Evaluation of Real Estate Financing for Existing Property

I would definitely obtain other offers for comparison. "More than 10 years is not possible" sounds very inflexible, and for a ten-year fixed interest rate, the rate is not necessarily great (which could also be due to the low equity). Since no one knows whether the interest rates will still be this favorable in 10 years and 15 years is becoming the new standard, I would definitely get offers for that as well. And since you have a substantial surplus, I would not categorically exclude the possibility of special repayments.

The Sparkasse only does 5, 8, or 10 years. And yes, the equity is the limiting factor.

At Deutsche Bank we would have gotten 1.6% for 200,000, the 30,000 for renovation at 6.9%. They simply didn’t want to. Additionally, I am still in the probation period until the end of March due to a job change (the probation period is pro forma, I was headhunted there and plan to stay longer)... at many banks you are already disqualified for that.

If that is a problem, ask the employer to lift the probation period!

I would also want at least 15 years.

In addition, I am still in the probation period until the end of March due to a job change (the probation period is just a formality, I was headhunted for it and plan to stay there longer)... with many banks, you already get excluded during that time.

Hi, can't you wait until it's over, it won't take much longer? It might improve the conditions in the long run. Olli

Morning,
can’t you just wait until it’s finished? It won’t take much longer, right?
Might improve the terms in the long run.
Olli

For the Sparkasse, it’s not a problem.
The employer can cancel whenever they want; statutory protection against dismissal only applies after 6 months. No one can override that.

The biggest sticking point is the equity; that would definitely improve the conditions in the long term. But by the time it reaches a level where it makes a difference, the house will have been sold elsewhere. The owners want to get rid of it soon because the interest rate lock on their loan is expiring, and instead of extending, they prefer to repay it.

We’d rather take advantage of the Baukindergeld for that, so we need to have the purchase contract secured by 31.03. And during those 10 years, you can save quite a bit and then pay down the principal after the interest lock expires.

Thanks for the valuable input here; next week we’ll finalize the details of the financing. Until then, I’ll calculate some early repayment options again and have the Sparkasse take another look at it.

After that, it will be locked in and off we go — March will be here before you know it.

Off to the loan broker.